Should I Start Social Security While I Continue to Work for the Railroad?

Welcome, everyone, to another edition of the Highball Advisors Railroad Retirement Mailbag. I'm John McNamara from Highball Advisors, and today’s question comes from Jim.

Jim asks: “Can I file for Social Security early at 62, and then switch to Railroad Retirement at full benefits when I turn 67? I'm currently 57 with 17 years of service.”

Great question, Jim.

Technically, yes—you could file for Social Security early at 62 if you have enough Social Security credits. However, keep in mind that claiming early will result in a permanent reduction in your Social Security benefits due to early retirement penalties.

Then, at 67, if you choose to switch over to Railroad Retirement, your Tier 2 benefits could also be affected. Specifically, there may be reductions or penalties related to your last pre-retirement non-railroad employment.

It gets a bit complicated, so I encourage you to check out my video titled “Should I Work Non-Railroad Jobs Before Retirement?” where I dive into the impact of these decisions.

As always, if you have a question you’d like me to cover, feel free to send it in—I might feature it in an upcoming video.

Until next time, stay on track and stay safe out there.

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Disclaimer: This article is provided for general information and illustration purposes only. Nothing contained in the material constitutes tax advice, a recommendation for purchase or sale of any security, or investment advisory services. Highball Advisors encourages you to consult a financial planner, accountant, and/or legal counsel for advice specific to your situation. Reproduction of this material is prohibited without written permission from Highball Advisors, and all rights are reserved from Highball Advisors, and all rights are reserved.